Ecopetrol Sa · BVC:ECOPETROL
Ecopetrol Sa — Morgan Stanley 23rd Annual Latin America Conference (September 2020)
11 slides from Ecopetrol Sa's conference presentation, September 2020
Slide 1: Morgan Stanley 23rd Annual Latin America Conference
Morgan Stanley 23rd Annual Latin America Conference September 2020
Slide 2: Legal Disclosure
LEGAL DISCLOSURE This document was prepared by Ecopetrol S.A. (the “Company” or “Ecopetrol”) with the purpose of providing the market and interested parties certain financial and other information of the Company. This document may include strategy discussions and forward-looking statements regarding
Slide 3: Committed to life and business continuity
Committed to life and business continuity Gradual increase in operating activities # of work-fronts in worksites* DIGITAL 350 Beginning of Preventive Beginning of Mandatory TRANSFORMATION Isolation in Ecopetrol Isolation in Colombia 300 250 ~ 9,000 Employees with secure digital # of work-fronts 20
Slide 4: Unprecedented contraction with gradual recovery
Unprecedented contraction with gradual recovery BRENT PRICE (US$/Bl) DOMESTIC FUELS DEMAND** (MBD) Gasoline Diesel Jet fuel 76% 71% 269 290 271 34 217 195 31 35 202 184 19 months 4 months 118 20 149 7 4 123 121 106 4 106 2 100 100 99 Crisis Covid-19 crisis 3 84 2015-2016 2020 115 138 115 64 91 63
Slide 5: Financial metrics adjusted to current juncture
Financial metrics adjusted to current juncture EBITDA EBITDA/Bl Stable organic EBITDA Margin 7.3 COP T 15.3 US$/BL US$ M investment levels 45% 44% 46% Target 31% 3,521 3,000 – 3,400 30.8 31.1 39.6 35.8 15.7 37.4 7.3 15.3 2018 2019 1H19 1H20 2018 2019 1H19 1H20 Gross Debt 2% Cash 6% / EBITDA Breakeve
Slide 6: Plan responds to crisis and protects pillars of 2020+ Strategy
Plan responds to crisis and protects pillars of 2020+ Strategy 1 Reserves and Production Growth RESERVES AND PRODUCTION GROWTH Existing Fields: enhanced recovery technology and focus in opportunities that generate the most value Exploration in Colombia: drilling of +30 wells during 2020-2022 Unconve
Slide 7: Optimized portfolio that safeguards value proposition
Optimized portfolio that safeguards value proposition INVESTMENT PLAN 11% 2% 2020-2022 7% Upstream Safe, reliable and 11,000 – 13,000 Midstream profitable Downstream production 2020 -2022 (US$ M) 80% Corporate Cash flow protection STRATEGIC 80% 20% THEMES: COLOMBIA INTERNATIONAL 25% gas, energy tran
Slide 8: Investment plan underpinned by cashflow growth
Investment plan underpinned by cashflow growth 2020-2022 Cashflow (US$ M) 4,506 2,416 Cashflow Sensitivity 646 17,375 US$ M 11,436 +/- 1 US$/Bl -508 508 2020 1,942 2021 4,359 -497 497 +/- 100 COP/USD 2022 5,134 3,203 +/- 5 MBD -152 152 Production Initial Operating Net additional Interest Other Avail
Slide 9: Ratified commitment to TESG
Ratified commitment to TESG* DECARBONIZATION INNOVATION AND TECHNOLOGY INVESTMENT 2020-2022 Reduction of 20% emissions by 2030 MW RENEWABLE ENERGY 184 ~158 US$ M 34 43 Initiatives in place: 3 6 27 SOCIO-ENVIRONMENTAL INVESTMENT Renewable energy portfolio: 85 300 MW** by 2022 64 51 3% increase in ene
Slide 10: Plan summary
Plan summary TARGETS METRIC 2020 2020- 2022 US$ 3,000 – 3,400 M US$ 11,000 – 13,000 M FINANCIAL Organic Investments Operating Cashflow ~US$ 1,900 M US$ 11,000 M – 12,000 M Cash Breakeven* < US$30 /Bl US$ 30 - 40 /Bl Gross Debt / EBITDA (x) <3.5x <2.5x OPERATIONAL Production (mboed) ~700 ~700 - 720 T
Slide 11: De todos, para todos
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